Growth and Risk-Sharing with Private Information
Aubhik Khan () and
Macroeconomics from University Library of Munich, Germany
We examine the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in our economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk-sharing between households occurs through long-term contracts with intermediaries. We find that incomplete risk- sharing tends to reduce the rate of growth relative to the complete risk sharing benchmark. Numerical examples indicate the contracts are relatively efficient and that the growth effects of private information are small.
Keywords: growth; long-term contracts; risk-sharing (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Pages: 31 pages
Note: Type of Document - PDF; prepared on Acrobat PDF; pages: 31 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Growth and risk-sharing with private information (2001)
Working Paper: Growth and risk-sharing with private information (1999)
Working Paper: Growth and Risk-Sharing with Private Information (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:9802003
Access Statistics for this paper
More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().